Merkel, Monti Show Unity Over Euro Crisis

Italian Prime Minister Mario Monti and German Chancellor Angela Merkel said they working together to strengthen the European Union, a public display of unity days after the two leaders dueled over the need for short-term measures to fight the euro-zone crisis.

BERLIN — Fears are growing in Berlin that Italy’s former prime minister Silvio Berlusconi may return to centre-stage after this weekend’s election, imperilling Rome’s reform drive and the euro zone’s tentative emergence from its debt crisis.
It is unclear whether 76-year-old Berlusconi, a scandal-ridden media tycoon and four times prime minister, will win enough support to wield influence, but even the possibility of a comeback is a nightmare for German Chancellor Angela Merkel.

Yield on 10-year Spanish bonds remains stubbornly high near 7%, but yield on 2-year bonds is in the midst of a breathtaking crash.
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Spain 10-Year Government Bond Yield

The G-20 summit is over. As expected, the two-day summit produced nothing but bickering.
On day one, European Commission president Jose Barroso kicked things off by sniping at a Canadian reporter and blaming the US for Europe's problems.
UK Independent Party (UKIP) leader Nigel Farage responded by calling Barroso a "delusional idiot".

Merkel Hardens Position
The EU summit is a day away and pre-summit bickering is so intense that it will be difficult if not impossible to get any major agreements.
Two days ago, in a speech in German parliament, Bloomberg reported Merkel Hardens Resistance to Euro-Area Debt Sharing